New Jersey Multi-State Licensing Attorneys

Levy & Watkinson, P.C. assists clients in obtaining state licenses for mortgage banking and mortgage brokering within the northeast region and throughout the nation. We assist with the company formation, whether it is a corporation or limited liability company. Levy & Watkinson then assists the client to obtain authority to do corporate business through outside vendors, who act as registered agent in each of the states in which the licensed company seeks to do business.

We then assist the client by preparing the application. This may involve providing advice regarding the state requirements, ordering the surety bond, reviewing the lease or deed to the proposed office, advising the client on branch office requirements, among various other steps. In New Jersey, we can assist the client with mortgage banker and mortgage broker licensing training . We then file with the state or states, and follow up with the appropriate state regulator until the company is licensed. Our goal at Levy & Watkinson, P.C. is for your company to obtain the proper state license(s) as quickly as possible so that you may begin originating loans without unnecessary delay.

The decision regarding where to license your mortgage company involves many factors. The first factor to consider is where, in your business judgment, there is the greatest potential to produce loans. For this, we will rely to a large degree on your business judgment. However, in addition to market factors, regulatory and licensing issues also enter into this decision, such as the following:

OFFICE REQUIREMENTS - Many states still require that your mortgage company maintain an office in a state to do business in that state. This requirement may vary depending upon whether your company is acting as a banker or as a broker, and may also vary based on your state of origin. In addition, most states require that the office be supervised by a qualified individual.

LOAN OFFICER REGISTRATION AND LICENSING - A trend among state regulators is to require that loan officers be registered or licensed with the state before they begin soliciting loans in that state. This may require pre-licensing education for each loan officer. In addition, each loan officer may be required to take continuing education in each state after the loan officer is licensed.

NET WORTH REQUIREMENTS - Many states now require that brokers and banker companies maintain a specified net worth to qualify for licensure. Further, the state may require that some of that net worth be maintained in liquid form.

SURETY BONDS - The surety bond is an insurance policy obtained by the licensed company to protect the public from wrongful acts by the licensee. Bond amounts vary on a state-by-state basis.

FHA AUTHORITY - Once licensed, Levy & Watkinson, P.C. can prepare your FHA application to be submitted to HUD for approval as a correspondent. If you meet FHA requirements, we can also assist your company in obtaining an initial sponsor. Once licensed to originate FHA loans, you will be exempt from state licensing in some states.

At Levy & Watkinson, P.C., we would welcome assisting your company to obtain the licenses it needs to originate mortgage loans. For multi-state projects, we can provide you with a flat fee cost for our services, which will vary based on the number of states chosen. For further information or a proposal for a multi-state licensing project, call Wayne A. Watkinson, Esq., at (732) 404-1128, or contact us online.

Serving clients in New Jersey, New York, Pennsylvania, and nationwide.

Levy & Watkinson
90 Woodbridge Center Drive
Suite 210
Woodbridge, NJ 07095

Telephone: 732-404-1128
  Facsimile: 732-404-1129

http://www.levywatkinson.com/

E. Robert Levy
Wayne A. Watkinson
Janet G. Sofield
Richard B. Gelfond
John D. Blomquist

The New Jersey law firm of Levy & Watkinson, P.C., serves clients throughout New Jersey, New York State, and Pennsylvania, including Parsippany, Hackensack, Morristown, Newark,Woodbridge, Edison, Somerville, Trenton and Toms River.

Banking and finance is a broad subject covered by federal and state law. There are a number of federal agencies that regulate banking transactions, the business structure of financial institutions and bank operations. State law, with the addition of some federal law, governs the management and operation of checking accounts. Banks can be chartered under federal or state law. For assistance regarding banking and finance matters, contact our firm to schedule a consultation with an attorney.

Types of Banks

Banking institutions can be organized either under state or federal law. In addition, under federal banking laws, banking institutions can be “banks” or “savings associations.”

The most common banking institution is the commercial bank. Commercial banks generally offer a full range of services, including checking accounts for businesses and individuals, savings accounts, investment accounts and loans. A commercial bank can be chartered under state or federal law.

Savings banks are a type of savings association that are generally limited to noncommercial deposit and lending activities. There are two forms of savings banks in the US: the mutual savings bank and the stock savings bank.

A savings and loan association (S & L) can be chartered under state or federal law. Traditionally, the activities of savings and loan associations were consumer-oriented and limited to receiving savings deposits and making consumer and mortgage loans. Savings and loan associations were granted broader powers in 1980.

A credit union has members that have a preexisting common bond, such as being employed by the same entity or living in a certain geographic area. Credit unions generally provide modest financial services, such as non-commercial deposits and consumer lending, to their members.

Regulation of Banks

There are three federal agencies that regulate commercial banks:

• Office of the Comptroller of the Currency: charters, regulates and supervises all national banks
• Board of Governors of the Federal Reserve System: regulates and supervises commercial banks to ensure their soundness and the stability of the nation's financial system; "the Fed" is the US's central bank
• Federal Deposit Insurance Corporation (FDIC): maintains the stability of the US financial system by insuring deposits, examining and supervising banks and managing receiverships

Both the Office of Thrift Supervision and the FDIC regulate savings associations. The Office of Thrift Supervision is the primary federal regulatory authority for federally and state-chartered savings associations, their subsidiaries and their registered savings and loan holding companies. The National Credit Union Administration (NCUA) charters and supervises federal credit unions and insures savings in federal and most state-chartered credit unions through the National Credit Union Share Insurance Fund (NCUSIF).

Electronic Banking

Electronic banking, also called electronic fund transfer (EFT) uses computers and electronic technology instead of paper checks and transactions. For many banking customers, electronic banking is an important feature, allowing convenient, 24-hour access to cash and account information. Electronic banking involves a number of services, including:

• Automated teller machine (ATM) transactions
• Direct deposit of paychecks and other payments into your account
• Direct withdrawal of payments so that recurring bills can be paid automatically
• Internet banking and conducting banking business from your personal computer
• By-phone payment systems that allow you to pay bills or transfer funds over the phone

Two federal statutes have a direct impact on day-to-day electronic banking: the Electronic Fund Transfer Act and the Check Clearing for the 21st Century Act.

Conclusion

Bank transactions touch on many different issues, from financing to electronic checks. It is important for business owners to be aware of the regulations and laws that govern banking transactions, particularly interest ceilings, eligibility for loans and small business lending. It may be necessary to consult with an attorney when considering options that involve complicated bank transactions. If you have questions about banking and finance, contact our firm to schedule a consultation with an attorney.

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DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

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Frequently Asked Questions about Banking and Finance

Q: Are all banks the same?

A: No. Some banks offer a wide variety of consumer products such as checking accounts, savings accounts and investment accounts, including individual retirement accounts (IRAs). Other banks, such as savings and loan banks, primarily handle mortgages and real estate transactions.

Q: How are banks regulated?

A: There are a number of federal agencies that regulate banks. The Office of the Comptroller of the Currency charters, regulates and supervises all national banks. The National Credit Union Administration regulates credit unions. In addition, the Federal Deposit Insurance Corporation (FDIC) maintains the stability of the US financial system by insuring deposits, examining and supervising banks and managing receiverships. The Board of Governors of the Federal Reserve System regulates and supervises commercial banks to ensure the safety and soundness of the nation's banking and financial system.